Mizuho Securities analyst Ann Hynes has maintained their bullish stance on LH stock, giving a Buy rating today.
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Ann Hynes’s rating is based on Labcorp Holdings’ strong financial performance and positive future outlook. The company reported solid earnings for Q4:24, with earnings per share exceeding consensus estimates by 2% due to robust organic growth. The diagnostics segment showed exceptional performance with a 10.2% increase in revenue year over year, driven by both higher testing volumes and pricing. Additionally, Labcorp’s free cash flow saw a significant improvement of 47% year over year, positioning it well for 2025.
Looking forward, Labcorp provided guidance indicating continued strong revenue growth of 7.4% for 2025, with a notable contribution from the diagnostics segment. The biopharma laboratory services segment also demonstrated impressive growth, with a 10.4% increase in revenue and improved operating margins. Ann Hynes highlighted the company’s stable pricing and strong cash flows as key factors that enhance earnings visibility, supporting her Buy rating for Labcorp Holdings.
In another report released today, Robert W. Baird also maintained a Buy rating on the stock with a $293.00 price target.
LH’s price has also changed slightly for the past six months – from $225.870 to $247.740, which is a 9.68% increase.